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EZY CEO "no Growth In 09, Base Closures Possible"  
User currently offlineLehovec From United Kingdom, joined Apr 2005, 293 posts, RR: 1
Posted (5 years 6 months 1 week 5 days 9 hours ago) and read 7132 times:

A couple of days ago all EZY employees have received an internal communication from EZY CEO Andy Harrison from which I can extract a couple of conclusions:

1. easyJet will do well to make any profit at all in 2009
2. easyJet will not grow next year and, indeed, some bases will shrink
3. cannot rule out the possibility of further base closures and redundancies

I personally see STN and LPL closing, and also probably one of the Scotish bases.
STN is most likely to go first. There has been no expansions from STN for a while, this winter STN is suffering some of the worst cuts which includes frequency reductions on some routes not operated from other airports (LJU, TLL, OVD etc), transfer of some routes to LGW (BSL, LYS), stopping some routes alltogether (LEI,VLC)...

Also it has been known that STN hasn't been making any money for a while now, apparently now STN is losing money. It will be very interesting to see what happens in coming months with STN and EZY in general.

This e-mail was sent out before STN "expansion" was approved but I don't believe that this will make any difference to EZY. STN is and will most probably stay the 2nd most expensive airport in London area.

Any thoughts?

36 replies: All unread, showing first 25:
 
User currently offlineCYatUK From United Kingdom, joined Apr 2006, 810 posts, RR: 0
Reply 1, posted (5 years 6 months 1 week 5 days 6 hours ago) and read 6913 times:



Quoting Lehovec (Thread starter):
personally see STN and LPL closing, and also probably one of the Scotish bases

LPL?

I can't see this happening. EZY base at Liverpool is one of the core ones of the UK network (at least in the North).



CY@Uk
User currently offlineLehovec From United Kingdom, joined Apr 2005, 293 posts, RR: 1
Reply 2, posted (5 years 6 months 1 week 5 days 6 hours ago) and read 6846 times:



Quoting CYatUK (Reply 1):
LPL?

I can't see this happening. EZY base at Liverpool is one of the core ones of the UK network (at least in the North).

By what criteria is LPL one of the core bases?

Well, to be honest EZY have been in LPL for ages and they haven't grown out of there much. In the last year there have only been 3 new routes. At the same time FR came to LPL after EZY and are now very big out of there. Every route FR competes with EZY, EZY pulls out of.

With EZY entering into MAN after GB aqusition, I believe that LPL will be loosing a/c and routes over MAN. This is maybe not the case at the moment, but Andy did say that any expansion will be on the other bases expenses, so let's wait and see.


User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 3, posted (5 years 6 months 1 week 5 days 6 hours ago) and read 6800 times:

During recurrent training last week, there was a question and answer session with Andy Harrison. He basically outlined what was given in the internal communication a few days ago. Further to this, there will be presentations for all employees on Wednesday morning.

It has been long rumoured that more bases will close and indeed this has not been ruled out by the company. Basically, Easyjet want big bases, no room for bases with 2/3/4 aircraft. That is precisely why the "small base review" has been conducted and obviously these bases appear to be the most vunerable.

What was said was that there was scope for bases such as MAN & LPL and EDI & GLA to work together although precise details of what exactly this would entail are unclear. Personally, I don't think that LPL will close. Whilst there certainly isn't any room for sentiment, not least under current operating conditions, LPL and Easyjet are synominous with each other and would therefore be a big shock for LPL and for the City as a whole. But never say never, especially in this industry.

Aircraft, as we know, will be taken out of the Easyjet fleet in the near future. 737's, GB Airbuses, and a few early 319's. These will be replaced by new deliveries meaning that there is little ability for overall growth of the airline.

Hopefully by cutting the slack elsewhere will make the airline more efficient and offer the chance for MAN to expand. Unfortunately however, growth at individual bases will also quite possibly be the expense of base closures which is unfortunate.

[Edited 2008-10-10 10:10:29]


Proud to fly from Manchester!
User currently offlineRichardw From United Kingdom, joined May 2001, 3744 posts, RR: 0
Reply 4, posted (5 years 6 months 1 week 5 days 5 hours ago) and read 6648 times:

If they pull out of STN, will LH return with MUC and SAS with CPH, KLM with AMS, OK with PRG

Perhaps the merged Click air/Vueling may do some routes.

[Edited 2008-10-10 11:01:54]

[Edited 2008-10-10 11:04:58]

User currently offlineNCB From , joined Dec 1969, posts, RR:
Reply 5, posted (5 years 6 months 1 week 5 days 3 hours ago) and read 6521 times:

What about their planned expansion at BRU?

After all, BRU is building the Low cost terminal for EZY...


User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 6, posted (5 years 6 months 1 week 5 days 3 hours ago) and read 6497 times:



Quoting NCB (Reply 5):
What about their planned expansion at BRU?

After all, BRU is building the Low cost terminal for EZY...

A good extent of expansion at BRU could come from flights originating from existing bases. Some very busy Easyjet destinations aren't bases. AGP for instance.



Proud to fly from Manchester!
User currently offlineHumberside From United Kingdom, joined Dec 2005, 4914 posts, RR: 5
Reply 7, posted (5 years 6 months 1 week 5 days 3 hours ago) and read 6457 times:



Quoting Lehovec (Thread starter):
STN is most likely to go first. There has been no expansions from STN for a while, this winter STN is suffering some of the worst cuts which includes frequency reductions on some routes not operated from other airports (LJU, TLL, OVD etc), transfer of some routes to LGW (BSL, LYS), stopping some routes alltogether (LEI,VLC)...

The problem with cutbacks at STN is FR. If EZY reduce based aircraft then they release peak time slots which FR would be a leading candidate to get. Are Easyjet prepared to let FR grow at STN and become stronger in the London market?

Quoting GT4EZY (Reply 3):
What was said was that there was scope for bases such as MAN & LPL and EDI & GLA to work together although precise details of what exactly this would entail are unclear.

Can there be any costs savings by combining crew bases?



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User currently offlineNCB From , joined Dec 1969, posts, RR:
Reply 8, posted (5 years 6 months 1 week 5 days 2 hours ago) and read 6338 times:



Quoting GT4EZY (Reply 6):
A good extent of expansion at BRU could come from flights originating from existing bases. Some very busy Easyjet destinations aren't bases. AGP for instance.

I don't know if that's enough to justify BRU building the expensive low cost terminal.
BRU isn't exactly a "high-attraction" area as is Malaga.
BRU is more a place where pax generate and a low cost terminal would only make sense if EZY would set up a hub for southbound flights to holiday area's.

GVA-BRU could be interesting if they can provide the frequency, but even then, it'd be 4 flights a day at most.


User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 9, posted (5 years 6 months 1 week 5 days 1 hour ago) and read 6335 times:

Can there be any costs savings by combining crew bases?
Yes through more efficient utilisation of crew. Depending on the lengths an airline wanted to go to, one of a pair could become more of an "outstation" although there is no real indication as yet that U2 wants to do any of this.

[Edited 2008-10-10 14:15:19]


Proud to fly from Manchester!
User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 10, posted (5 years 6 months 1 week 5 days 1 hour ago) and read 6325 times:



Quoting NCB (Reply 8):
I don't know if that's enough to justify BRU building the expensive low cost terminal.
BRU isn't exactly a "high-attraction" area as is Malaga.
BRU is more a place where pax generate and a low cost terminal would only make sense if EZY would set up a hub for southbound flights to holiday area's.

GVA-BRU could be interesting if they can provide the frequency, but even then, it'd be 4 flights a day at most.

But surely that is a failing of BRU management if they are prepared to build a low cost terminal on the basis that Easyjet might open a base there. What is more likely the case is BRU lobbying LCC's to launch flights and the LCC terminal would be an attractive factor to their case.



Proud to fly from Manchester!
User currently offlineNCB From , joined Dec 1969, posts, RR:
Reply 11, posted (5 years 6 months 1 week 5 days 1 hour ago) and read 6296 times:



Quoting GT4EZY (Reply 10):
But surely that is a failing of BRU management if they are prepared to build a low cost terminal on the basis that Easyjet might open a base there. What is more likely the case is BRU lobbying LCC's to launch flights and the LCC terminal would be an attractive factor to their case.

Yes, we surely can say that.
BRU surely must have been promised something by EZY management or otherwise they would not have accepted to head this way. The only LCC worth building a terminal for in BRU is EZY as FR already has a base in CRL and is not likely to move to expensive BRU and other LCC's are not particularily doing well.
If I remember well, the ecotaxes at AMS are reason for many airlines puling out of there and that may have been an additional argument for EZY's intention to establish in BRU.

EZY is strong competition to BRU's best customer SN.
The LCC terminal is not suitable for use by SN.
BRU is putting in place infrastructures to bring a hard competitor of its best customer, while that competitor may not come as soon as planned after all... if that's not playing with fire...


User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 12, posted (5 years 6 months 1 week 5 days 1 hour ago) and read 6270 times:



Quoting NCB (Reply 11):
EZY is strong competition to BRU's best customer SN.
The LCC terminal is not suitable for use by SN.
BRU is putting in place infrastructures to bring a hard competitor of its best customer, while that competitor may not come as soon as planned after all... if that's not playing with fire...

I'm surprised BRU are pushing ahead with this. Easyjet aren't quite as brash as FR and as long as efficiencies regarding parking and terminals are met, Easyjet never seem to be overly bothered about low cost terminals. Low cost with care and convenience, thats why they use primary airports.



Proud to fly from Manchester!
User currently offlineTrent900 From United Kingdom, joined Dec 2003, 515 posts, RR: 0
Reply 13, posted (5 years 6 months 1 week 4 days 10 hours ago) and read 4910 times:



Quoting Lehovec (Thread starter):
I personally see STN and LPL closing

There's no way ezy will give up STN. Its an extremely busy base for them.

Looking at the long term, STN is the ideal place for expansion in the north London area.

D.


User currently offlineRichardw From United Kingdom, joined May 2001, 3744 posts, RR: 0
Reply 14, posted (5 years 6 months 1 week 4 days 9 hours ago) and read 4822 times:

I think a big worry for U2 might be FR flights from non UK & IE bases into LGW, ie ALC-LGW, BGY-LGW and MAD-LGW.

User currently offlineCallumm92 From United Kingdom, joined Oct 2007, 118 posts, RR: 0
Reply 15, posted (5 years 6 months 1 week 4 days 9 hours ago) and read 4777 times:

If EZY dropped STN as a base, it is effectively handing a monopoly to Ryanair. I just can't see them doing that unless they were desperate...

Somebody mentioned dropping small bases - STN isn't exactly small - IIRC it has something like 10 or 11 aircraft based there.


User currently offlineLehovec From United Kingdom, joined Apr 2005, 293 posts, RR: 1
Reply 16, posted (5 years 6 months 1 week 4 days 9 hours ago) and read 4764 times:



Quoting Callumm92 (Reply 15):
If EZY dropped STN as a base, it is effectively handing a monopoly to Ryanair. I just can't see them doing that unless they were desperate...

And they are desperate... STN is loosing money for EZY, so why keep it open, especially when STN is not as important as other two London bases.

We were always told that FR is not our competition, BA is. And to a certain extent this believe is still in heads of some EZY managers. Leaving STN would indeed mean giving it to FR but STN has not been an important base for long time now.

Quoting Trent900 (Reply 13):
There's no way ezy will give up STN. Its an extremely busy base for them.

Not really, it's the smallest base in London area, and even smaller then some other UK bases (BRS for example). This winter STN will have 6-10 a/c opposed to 14-15 during the summer time. I have been at STN for over 3 years now and never ever have we had so few a/c.


User currently offlineHumberside From United Kingdom, joined Dec 2005, 4914 posts, RR: 5
Reply 17, posted (5 years 6 months 1 week 4 days 7 hours ago) and read 4669 times:



Quoting Lehovec (Reply 16):
We were always told that FR is not our competition, BA is. And to a certain extent this believe is still in heads of some EZY managers.

BA is competition, but so is FR. Lets say EZY did pull out of STN and FR expanded. Some more flights to Bergerac isn't going to be an issue, nor are more to a large market such as Alicante. But what if FR launched twice daily STN-Basle? EZY might feel the pinch with their Gatwick service. And the same could be said for other medium sized markets which can only sustain so much London service



Visit the Air Humberside Website and Forum
User currently offlineTrent900 From United Kingdom, joined Dec 2003, 515 posts, RR: 0
Reply 18, posted (5 years 6 months 1 week 4 days 6 hours ago) and read 4611 times:



Quoting Lehovec (Reply 16):
Not really, it's the smallest base in London area, and even smaller then some other UK bases (BRS for example). This winter STN will have 6-10 a/c opposed to 14-15 during the summer time. I have been at STN for over 3 years now and never ever have we had so few a/c.

I understand what your saying here, but having worked at STN for over 4 years 2008 has been their busiest year yet. FR are for example doing the same this winter (parking aircraft and cutting flights) at STN, as the majority of airlines do during the winter months.

You obviously love your job if you want all the airlines to leave ??

D.


User currently offlineRichardw From United Kingdom, joined May 2001, 3744 posts, RR: 0
Reply 19, posted (5 years 6 months 1 week 4 days 4 hours ago) and read 4509 times:

I find it surprising that they are losing money at STN.

Ski flights must be profitable, business cities, spanish holiday spots, Uk domestics. The leanest time of year may be Nov-Dec and Jan.

They bought Go Fly at a good price, and must be careful that if they pulled out of STN another airline may step in, Monarch perhaps, and this may affect overall London airport group profitability.

IMHO they are a major player in it for the long term and must stick with STN through these poor current times.

BTW Don't understand why they don't have flights to NCE from STN on one of the busiest days of the year for demand March 9th & 10th 2009 http://www.mipim.com/App/homepage.cf...nid=11888&iUserCampaignID=45380448

[Edited 2008-10-11 12:42:49]

User currently offlineRussianJet From Kyrgyzstan, joined Jul 2007, 7630 posts, RR: 23
Reply 20, posted (5 years 6 months 1 week 4 days 3 hours ago) and read 4493 times:
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Quoting Trent900 (Reply 13):
Looking at the long term, STN is the ideal place for expansion in the north London area.

Agree, and I would love to see EZY do the exact opposite of what is being suggested in this forum and really commit to STN with an expanded route network.



✈ Every strike of the hammer is a blow against the enemy. ✈
User currently offlineGkirk From UK - Scotland, joined Jun 2000, 24815 posts, RR: 56
Reply 21, posted (5 years 6 months 1 week 4 days 2 hours ago) and read 4413 times:

Could they drop MAN? It's only a 2 a/c base. Would be easier to dump than any of the others.


When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
User currently offlineRichardw From United Kingdom, joined May 2001, 3744 posts, RR: 0
Reply 22, posted (5 years 6 months 1 week 4 days 1 hour ago) and read 4357 times:



Quoting Gkirk (Reply 21):
Could they drop MAN? It's only a 2 a/c base

They've only just bought it!

and are waiting for the competition at MAN to run into financial problems.


User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1760 posts, RR: 3
Reply 23, posted (5 years 6 months 1 week 3 days 11 hours ago) and read 4192 times:



Quoting Gkirk (Reply 21):
Could they drop MAN? It's only a 2 a/c base. Would be easier to dump than any of the others.

In theory MAN could close as it is a small base but the airport and the market is desirable to Easyjet. When the economy recovers, MAN would surely be a great base for continued expansion. However, as I have said before, any expansion next year is going to be at the expense of somewhere else.



Proud to fly from Manchester!
User currently offlineDavid_itl From United Kingdom, joined Jun 2001, 7329 posts, RR: 14
Reply 24, posted (5 years 6 months 1 week 3 days 11 hours ago) and read 4160 times:
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Quoting GT4EZY (Reply 23):
the airport and the market is desirable to Easyjet

If MAN had chosen a different path some 7 years ago, we'd be having 7 or 8 based U2 aircraft here now (all things being equal i.e BA retreating back then!).

Quoting RussianJet (Reply 20):
Agree, and I would love to see EZY do the exact opposite of what is being suggested in this forum and really commit to STN with an expanded route network.

If both FR and U2 have "issues" with the charges at STN currently, given that the STN is to be expanded, how would they expect it to be funded other than further increases in charges? If it's cheaper now to park aircraft during the winter then operate them out of STN, then one can only imagine that STN would start to "leak" aircraft to other bases. No cross-subsidisation from LHR can come into play (i.e. artifically pegging STN charges down) if the BAA is forced to sell 2 London airports.

FR have already commented on several occasions about the costs involved for a 2nd runway, comparing it to what MAN spent (must have been the 1st time FR have ever shown MAN in a favourable light!).


25 GT4EZY : Hindsight is a great thing and none of us quite knew back then the true extent that the LCC's would expand.
26 Danfearn77 : Absolutely. What goes down has to go up and it would be poor management if they pulled the plug on STN. U2 are in a better position than a lot of oth
27 Richardw : The MAN base was acquired with the GB Airways takeover, they didn't start it and GT tried a number of routes, so U2 have acquired historic load/revenu
28 Danfearn77 : Exactly. Rather like BE with BACON it might take them time to turn it into their own if you like, but MAN will definately work for them.
29 Planesarecool : No, they inherited it, they didn't open it. Firstly, I'm not sure where "what goes down has to go up" comes from. I've never heard the phrase used, i
30 Danfearn77 : Sorry, thats what i ment to say but i didnt bring my self across clearly. Economy wise. Sure we are in difficult times but 1-2 years down we could be
31 GT4EZY : Whilst the current economic climate is dictating some things, Easyjet want fewer bases and large bases at that. Whilst STN cannot be classed as a sma
32 RussianJet : I understand and agree with a lot of what you wrote, but unlike FR would have us believe, not flying aircraft in winter is not purely, or even mostly
33 Lehovec : I do love my job. That is why I have been with EZY for more then 3 years and not planning on leaving any time soon. IF indeed STN closes then I will
34 Richardw : Perhaps they need to analyse how the DTM Ws perform before making such decisions. Well they need a kick from HO. STN's USP over LTN is the direct rai
35 Lehovec : What make me laugh with closure of DTM is the fact that now they have crew nighstopping there, which is in my eyes more expensive then having crew ba
36 RussianJet : Well obviously, hence why I say that is what I would like, rather than what is happening. Sorry guv, not my words.
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